Contracting Requirements for the City of San Pablo

To become a contractor with the City of San Pablo, one of the important elements are meeting insurance requirements. Please see the links below to learn more and be eligible for work with the City.

A. General, Automotive, and Employer’s Liability, and Workers’ Compensation Provisions. On or before beginning any of the services or work called for by any term of this agreement, San Pablo EDC, at its own cost and expense, shall carry, maintain for the duration of the agreement, and provide proof thereof that is acceptable to the City the insurance specified herein below with insurers and under forms of insurance satisfactory in all respects to the City. San Pablo EDC shall not allow any subcontractor to commence work on any subcontract until all insurance required of the San Pablo EDC has also been obtained for the subcontractor. San Pablo EDCs shall maintain limits no less than set forth below. If the consultant maintains higher limits than the minimums shown above, the City shall be entitled to coverage for the higher limits maintained by the consultant.

General Liability: $2,000,000

(Includes operations, products and completed operations.)

Per occurrence for bodily injury, personal injury, and property damage.

Automotive Liability: $1,000,000

Per accident for bodily injury and property damage

Workers’ Compensation: As Required by the State of California. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the San Pablo EDC, its employees, agents, and subcontractors.

Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the San Pablo EDC shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses.

Other Insurance Provisions

The General Liability and Automobile Liability policies are to contain, or be endorsed to contain, the following provisions:

The City, its officers, officials, employees, and volunteers are to be covered as insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the San Pablo EDC; and with respect to liability arising out of work or operations performed by or on behalf of the San Pablo EDC including materials, parts or equipment furnished in connection with such work or operations. General Liability coverage shall be provided in the form of an Additional Insured endorsement (form CG 20 10 11 85, or forms CG2010 version 10/01 and GC 2037 versions 10/01 or equivalent) to the San Pablo EDC’s insurance policy, or as a separate owner’s policy.

For any claims related to this project, the San Pablo EDC’s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the San Pablo EDC’s insurance and shall not contribute with it.

Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days prior written notice has been provided to the City.

Each of the following shall be included in the insurance coverage or added as an endorsement to the policy:

(i) City, its officers, employees, agents, and volunteers are to be covered as insureds as respects each of the following: liability arising out of activities performed by or on behalf of San Pablo EDC, including the insured's general supervision of San Pablo EDC; products and completed operations of San Pablo EDC; premises owned, occupied or used by San Pablo EDC; or automobiles owned, leased, hired, or borrowed by San Pablo EDC. The coverage shall contain no special limitations on the scope of protection afforded to City, its officers, employees, agents, or volunteers.

(ii) The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.

(iii) An endorsement must state that coverage is primary insurance and that no other insurance affected by the City will be called upon to contribute to a loss under the coverage.

(iv) Any failure of San Pablo EDC to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers.

(vi) Notice of cancellation or non-renewal must be received by City at least thirty days prior to such change.

Deductibles and Self‑Insured Retentions. San Pablo EDC shall disclose the self-insured retentions and deductibles before beginning any of the services or work called for by any term of this agreement. During the period covered by this agreement, upon express written authorization of City Manager, San Pablo EDC may increase such deductibles or self‑insured retentions with respect to City, its officers, employees, agents, and volunteers. The City Manager may condition approval of an increase in deductible or self-insured retention levels upon a requirement that San Pablo EDC procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them.

Notice of Reduction in Coverage. In the event that any coverage required under this section of the agreement is reduced, limited, or materially affected in any other manner, San Pablo EDC shall provide written notice to City at San Pablo EDC's earliest possible opportunity and in no case later than five days after San Pablo EDC is notified of the change in coverage.

Waiver of Subrogation.

San Pablo EDC hereby agrees to waive subrogation which any San Pablo EDC insurer may acquire from San Pablo EDC by virtue of the payment of any loss. San Pablo EDC agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation.

Acceptability of Insurers

Insurance is to be placed with insurers with a current A.M. Best rating of no less than A: VII unless otherwise acceptable to the Entity. Exception may be made for the State Compensation Insurance Fund when not specifically rated.

Verification of Coverage

San Pablo EDC shall furnish the City with endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that Insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the city, unless the insurance company will not use the City’s forms. All endorsements are to be received and approved by the City before work commences. However, failure to do so shall not operate as a waiver of these insurance requirements. As an alternative to the City’s forms, the San Pablo EDC’s insurer may provide complete copies of all required insurance policies, including endorsements effecting the coverage required by the specifications.

Subcontractors

San Pablo EDC shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein.

B. Professional Liability. San Pablo EDC, at San Pablo EDC's own cost and expense, shall maintain for the period covered by this agreement professional liability insurance for licensed professionals performing work pursuant to this agreement in an amount not less than one (1) million dollars covering the licensed professionals' errors and omissions, as follows:

(i) Any deductible or self-insured retention shall not exceed $50,000 per claim.

(ii) Notice that cancellation, material change, or non‑renewal must be received by the City at least thirty days prior to such change shall be included in the coverage or added as an endorsement to the policy.

(iii) The following provisions shall apply if the professional liability coverages are written on a claims-made form:

The retroactive date of the policy must be shown and must be before the date of the agreement.

2. Insurance must be maintained, and evidence of insurance must be provided for at least five years after completion of the agreement or the work.

3. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the date of this agreement, San Pablo EDC must provide extended reporting coverage for a minimum of five years after completion of the agreement or the work. The City shall have the right to exercise at the San Pablo EDC's cost, any extended reporting provisions of the policy should the San Pablo EDC cancel or not renew the coverage.

4. A copy of the claim reporting requirements must be submitted to the City prior to the commencement of any work under this agreement.

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